Arizona to be second state in the US to legally accept gold, silver as tender

Arizona lawmakers have voted in favour of legally accepting gold and silver coins as well as bullion as a currency in the state, driven mostly by worries about the strength of the world's monetary system.

On Tuesday the GOP-led Senate gave final approval to the bill that would make Arizona the second state in the nation, after Utah, to make the two most popular precious metals a legal currency. If signed into law by Governor Jan Brewer, the measure would take effect next year.

Utah passed a similar legislation in 2011, which gives equal legal status than existing U.S. currency issued by the federal government to silver and gold coins.

Gold-backed money fell out of favour during World War I because the US and other nations found themselves forced to print more cash to pay for the war. President Richard Nixon formally abandoned the gold standard in 1971.